Ever since the prices of bitcoins skyrocketed from $1,000 in 2016 to nearly $20,000 in 2017, people have been facing a dilemma of whether to buy cryptocurrencies or not.

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HDFC Bank has disallowed its customers from buying Bitcoins, cryptocurrencies, and virtual currencies through the bank's credit, debit, and prepaid cards. In a circular to the HDFC Bank customers, it said: "You may be aware of the increasing global apprehensions regarding Bitcoins, cryptocurrencies, and virtual currencies. The Reserve Bank of India has also cautioned the public regarding the potential economic, operational, legal and security-related risks associated with dealing with such currencies."

"To ensure our customer's security, we have decided to not permit usage of HDFC Bank Credit, Debit and Prepaid Cards towards purchase or trading of such Bitcoins, cryptocurrencies, and virtual currencies, on merchants suspected to be dealing in crypto-currency or online foreign exchange trading or both," the circular added.

Ever since the prices of bitcoins skyrocketed from $1,000 in 2016 to nearly $20,000 in 2017, people have been facing a dilemma of whether to buy cryptocurrencies or not.

A bitcoin is an open source and peer-to-peer electronic cash system which runs on blockchain technology. This is a distributed ledger which contains details of every transaction that allows a user’s computer to verify the validity of every transaction of this virtual currency. Hence, these types of transactions are transparent to every user. In India, anyone can buy bitcoins from dedicated exchanges such as Unocoin or Zebpay by downloading some particular apps or using websites.

Earlier in mid-February, Citi Bank had banned its customers from buying cryptocurrencies using credit and debit cards. It said in an email circular: "Given concerns, both globally and locally including from the Reserve Bank of India, cautioning members of the public regarding the potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with bitcoins, cryptocurrencies, and virtual currencies, Citi India has decided to not permit usage of its credit and debit cards towards purchase or trading of such bitcoins, cryptocurrencies, and virtual currencies."

This bank bans cryptocurrency purchases via its debit and credit cards: Know whyDescription:Ever since the prices of bitcoins skyrocketed from $1,000 in 2016 to nearly $20,000 in 2017, people have been facing a dilemma of whether to buy cryptocurrencies or not.Times Now